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Say Goodbye to Bear Markets
Market corrections (10% loss or more) occur every 1.84 years, and last an average of 188 days.*
Index annuity owners are exempt from market corrections!
For clients in or near retirement who own stocks or mutual funds, market corrections can have a severe impact on their retirement security.
Recovering from a market correction requires a greater percentage increase than the correction itself. This chart shows the recovery percentages necessary for various market-loss percentages. For example, after a 25% market loss, an original $100,000 investment now has a value of $75,000; the rate of return needed to grow $75,000 to $100,000 is 33.3% (100,000 ÷ 75,000 – 1 = 33.3%).
*S&P 500 since 1950. Source: The Motley Fool; October 10, 2020.
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